Rate Hikes Minimally Affect Investors’ Outlook

This week’s Sentiment Survey special question asked AAII members how this year’s rate hikes and the Federal Reserve’s intention to further tighten monetary policy are impacting their market outlook. Slightly more than half of all respondents (51%) said the hikes are either having no impact or only a minimal impact on their outlook. Several of these respondents said the gradual removal of stimulus was already factored into the market. About 22% thought the rate hikes were a positive sign, primarily because they reflect improving economic conditions. Approximately 11% of respondents had the opposite view and think the rate hikes could be bad for stocks. Many of them expressed concerns about a forthcoming pullback in stock prices.